Sirius has secured €45m of debt from BerlinHyp, which is owned by Landesbank Berlin, to buy large mixed-use commercial sites in Germany for redevelopment.

The company, which invests in and redevelops office space for small and medium-sized businesses in Germany, said the debt would be secured against properties valued at €85m.

Sirius said that this new debt facility, together with existing cash reserves, will mean the company has around €70m to fund its ongoing programme of upgrading and developing a portfolio in order to drive rental growth and attract new tenants.

Once the new debt facility is fully drawn down over the next 12 months, borrowings will be €322m which represents an overall loan to value ratio of 62% based on the latest valuation.

BerlinHyp has agreed to combine the new credit facility with its two existing loans to Sirius, creating additional LTV headroom for the new enlarged facility. Sirius said it also has €55m of uncharged assets.

Kevin Oppenheim, chief executive officer at Sirius, said: 'We are pleased to have secured the new facility with BerlinHyp which places us in a stronger financial position, allowing us to achieve our medium term commercial objectives. We believe our product is showing the advantages of being highly flexible and this, together with its affordability, is continuing to attract significant interest from the SME market in Germany.’

He said between October last year and 13 February this year it had signed tenants for more than 288,000 sq ft of new space at an average rate of €5.23. sq m, representing a significant uplift on the 116,000 sq ft of space vacated in the same period, which was let at €3.50/ sq m. Occupancy is now at 77%, in line with management expectations.

Sirius said it is continuing to invest in its asset management team in order to manage the opportunities and growth across the portfolio and currently employs 127 people.